The 65-year-old Cabaret star said the award was a "dream come true".
French Culture Minister Frederic Mitterrand, who hosted the ceremony in Paris, presented the red-ribboned medal to Minnelli.
Mr Mitterrand explained why the veteran singer had been selected to the receive the honour. "We love you because you make our lives better," he said.
"Thank you for wanting me. Thank you for caring about me. Thank you for giving this wonderful tennis game of life that we have going together," Minnelli said.
Earlier this month she picked up the Icon prize at the Silver Clef awards in central London.
Minnelli later performed at the Olympia music hall as part of her international tour, where her 1969 appearance became a live album.
Robert Redford, Arnold Schwarzenegger and Clint Eastwood are previous recipients of the prize.
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